Honda to slow U.S. output due to West Coast ports dispute

Noel Randewich

2 Min Read

SAN FRANCISCO (Reuters) - Japanese carmaker Honda Motor Co Ltd 7267.T plans to slow production at some of its plants in North America due to a parts shortage caused by a partial shutdown of ports along the West Coast.

A logo of Honda Motor Co covered by snow is seen on a car parked on a street in Tokyo January 30, 2015. REUTERS/Yuya Shino

The company expects shortages at its operations in Ohio, Indiana and Ontario, Canada, starting Monday and for each plant to adjust its production between Feb. 16 and Feb. 23, spokesman Mark Morrison told Reuters by email.

Ports along the U.S. West Coast are near gridlock due to a lengthy labor dispute between dockworkers and the group representing shippers and terminal operators.

With cargo delays rippling through the U.S. economy, President Barack Obama on Saturday dispatched U.S. Labor Secretary Tom Perez to California to help broker an agreement between shipping companies and dock workers.

“We do not have a sufficient supply of several critical parts to keep the production lines running smoothly and efficiently. These parts include a small number of critical parts such as electronics, and some larger assemblies such as transmissions,” Morrison said. Honda plants expected to slow production of models including the Civic, CR-V, Accord and Acura, Morrison said.

It and other car makers have already been transporting some crucial parts from Asia to U.S. factories by airplane due to the disruption caused by the labor dispute.

Toyota Motor Corp 7203.T, which built about 2 million vehicles in North America last year, has reduced overtime at some factories in North America, said spokesman Mike Goss.

Nissan Motor Co Ltd 7201.T said it has been somewhat affected by the West Coast slowdown.

“However, since about 85 percent of Nissan’s U.S. sales volume is from vehicles manufactured at plants in North America, and the localization rate of parts in the region is high, we believe there will be minimal impact on Nissan’s operations,” Nissan spokesman David Reuter said in an email.